Dogecoin initially started as a joke created by a Portland-based programmer, Billy Markus, yet it gained a loyal community, having a lot of traction.
The cryptocurrency made a name as good peer-to-peer crypto as it allows direct transaction over the internet without going across a centralized man. DOGE’s monetary policy has some specifics that make it more appealing to hobbyists.
Initially, Dogecoin was supposed to be limited to 100 billion coins. However, at the last minute, it was decided to have an illimitable supply of DOGE.
Right at this point, Dogecoin (DOGE) has reaped popularity with its enormous online following. Their greatest asset lies within Dogecoin’s passionate community, which has made a huge effort to raise money.
The meme-inspired Shiba Inu dog is DOGE’s famous trademark.
3 Simple Steps to Buy Dogecoin
Are you new to cryptocurrency? As an aspiring DOGE investor, there are some things that need attention before you can actually purchase one.
Step 1: Acquire a Dogecoin Wallet
You have a lot of options as regards to Dogecoin wallet. There are various types of wallets you could consider, and each varies in terms of usability, security, and features. You can either choose a hardware wallet or a free software wallet.
Considered as the safest wallet type, hardware wallets might require a bit of an initial investment. Hardware wallets hold your private key offline on a small tangible device. Ledger Nano X and Ledger Nano S are the most popular choice among hardware wallets. These wallets don’t only support Dogecoin but around 1000 cryptocurrency assets.
On the other hand, software wallets store private keys to a Doge account, whether it be a desktop, laptop, or mobile phone. Unlike hardware wallets, software wallets are vulnerable to malware, making them at risk for online criminal attacks. If you plan to use a software wallet, make sure to adopt the necessary precautions.
There is a Doge-specific wallet called MultiDoge in the market. This is accessible in Linux, Mac, and Windows. You could also choose a multi-currency wallet like Coinomi or Exodus.
Upon choosing a Dogecoin wallet, getting a Dogecoin address is the next important thing to pay attention to. A Dogecoin address is a string of numbers and letters. Dogecoin requires an address that begins with a capital “D.”
Step 2: Choose an Exchange
Despite the fame, there are only a few reputable exchanges to buy Dogecoin. There’s a handful of screened exchanges that provide an option in purchasing Doge with Euros and Dollars.
Binance is a leading crypto platform where you can buy Dogecoins. Binance Exchange has been around way back in 2017 and supports over 200 cryptocurrencies. To buy DOGE at Binance, go to their website, click “Buy Crypto” in the top navigation bar, then choose a payment method.
Read Binance’s in-depth review here: Binance Review 2021: Features, Pros, and Cons
If you are not into owning Dogecoins and are just interested in making a profit over DOGE’s price changes, eToro is the cheapest and easiest exchange option in the market. The company provides a user-friendly platform that helps in exchanging DOGE into fiat currency (EUR, USD, etc.).
However, because of eToro’s complicated withdrawal process, it is less suited for accessing actual coins. Hence, if you plan to use eToro for your investment, you can skip owning a Dogecoin wallet because you won’t be able to use all the coins you will buy.
Another one of the few places where you can buy Dogecoin through fiat or cryptocurrency is Changelly. This platform is a conversion service that only requires an email address to sign up. They work relatively quickly; however, they might charge high fees, especially if you choose to buy a Doge using your credit card.
Coinbase was instituted in 2012 and is the only publicly traded cryptocurrency exchange in America. It is a regulation-friendly exchange where users can buy easily using a bank account or credit card. Doge was just recently listed in Coinbase. To buy Dogecoin at the platform, click the “Buy/Sell” button located at the top of the dashboard. After that, select the preferred coin in the dropdown, then enter the amount you wish to invest.
You can also buy Dogecoin through the New York-based exchange Gemini. To buy DOGE at Gemini, find the “Markets” on the dashboard, then click “Dogecoin.” Enter the portion you want to buy, and then click the “Review Order” button to check the details before finalizing your purchase.
Launched in 2011 in the United States, Kraken is a trusted exchange that allows fund deposit through wire transfer or credit card. Users around Europe may find the platform’s free and fast SEPA deposits beneficial. After placing funds in your account, you can immediately buy Doge by clicking the “Buy Crypto” button located in the platform’s top navigation bar. Note that Kraken shows XDG ticker symbol instead of DOGE ticker symbol.
The US-based crypto exchange Bittrex has risen to fame in the previous years, and it provides a DOGE/BTC pair similar to that of Kraken. This means you will be required to buy or make a Bitcoin deposit to exchange it for Dogecoins.
Although there are a few cryptocurrency exchanges that welcome payments through PayPal, Dogecoin is not one of them. However, the online bitcoin marketplace “LocalBitcoin” lets users use PayPal to purchase Bitcoin, which you can transfer to Changelly in order to trade it for a DOGE.
Smaller crypto exchanges like YoBit, Exrates, and Livecoin, also have DOGE/USD pairs.
Take note that reviews regarding these exchanges should be checked first before you sign up and buy coins.
Step 3: Withdraw your DOGE
It is more practical to store your crypto in a wallet than on an exchange, as this lessens the risk of your crypto getting stolen. Hence, you should always withdraw the Doge you own to your wallet through the use of the address you obtained in step 1.
If you keep your coins in the exchange, you will lose control over your coins if the exchange goes bankrupt or hacked. There’s a big possibility that you will end up losing all of them.
Mine Dogecoin
“Is Dogecoin mineable?” is a frequently asked question in the community. Like Bitcoin, Doge keeps a blockchain that is sustained by a mining system. However, Bitcoin uses the Bitcoin SHA-256 mining algorithm, which is different from Dogecoin, which uses Scrypt.
At first, the algorithm Scrypt was developed to be ASIC-resistant. Nevertheless, ASIC manufacturers constructed a way around that, making Dogecoin mining only profitable with ASIC miners.
Cryptocurrencies can fluctuate in prices widely, which makes it inappropriate for all investor types. Crypto trading is not under the supervision of any EU regulatory framework. Keep in mind that there’s always a danger that goes with your capital.
No investment is 100% risk-free. So, if you are determined to do Dogecoin investing, consider the standing of your finances if you will lose your entire Doge investment in the future. Do you think you will still be financially sound?
Suppose your answer is no; avoid putting all of your investment on Dogecoin. Cryptocurrencies can be classified as an alternative investment, more fitted for people who have built up a diversified portfolio, healthy cash saving, and have no high-interest debt. The Dogecoin market is highly volatile. Hence, you should only buy coins you can afford to lose.
You might also want to read: Dogecoin: All the Way Up to $1 in 2021?
